Development Finance

Development Finance for First-Time Developers

New to property development? Getting finance as a first-time developer is harder, but far from impossible. Here is what you need to know.

Getting Started

Every developer starts somewhere

The UK property development market is not reserved for seasoned professionals. Many of today's most successful developers started with a single project and built from there. The challenge is not whether finance is available, but knowing how to access it and present yourself as a credible borrower.

At Doulton Bridging Finance, we have helped dozens of first-time developers secure competitive funding. We know which lenders are open to newcomers, what they expect to see, and how to structure your application for the best chance of approval.

Understanding the Landscape

Challenges first-time developers face

No Track Record

Most development lenders want to see a history of completed projects. Without one, many will either decline your application or offer significantly higher rates.

Higher Rates and Lower LTVs

First-time developers typically pay 0.75% to 1.25% per month and may be limited to 60-65% of GDV, compared to 70-75% for experienced developers.

Stricter Monitoring

Lenders may require more frequent site inspections and tighter controls on drawdowns to manage the perceived risk of funding an unproven developer.

Finding the Right Lender

Not all development lenders work with first-time developers. Knowing which ones do, and what they need to see, is where a specialist broker adds real value.

Lender Requirements

What lenders want to see

Even without a track record, you can present a strong case to lenders by demonstrating that you understand the project, have assembled the right team, and have a realistic plan for delivery and exit.

The more of these boxes you can tick before applying, the better your chances of approval and the more competitive your rate.

Lender Checklist

A clear, realistic development appraisal
Full planning permission (or strong evidence it will be granted)
An experienced main contractor with references
Evidence of your equity contribution
A credible exit strategy (sale or refinance)
Professional team in place (solicitor, QS, architect)

Practical Advice

How to get approved as a first-time developer

Start With a Smaller Project

A single-unit conversion or a small refurbishment is far easier to finance than a multi-unit ground-up build. Lenders want to see you succeed on a manageable scale before backing larger ambitions.

Build a Strong Team

Appoint an experienced contractor, quantity surveyor, and solicitor. Lenders look at the whole team, not just the developer. A proven contractor can offset your lack of personal experience.

Prepare a Detailed Appraisal

A professional development appraisal showing purchase costs, build costs, professional fees, contingency, and realistic GDV demonstrates that you understand the numbers and the risks.

Secure Planning Permission First

Sites with full planning permission are far easier to finance. Lenders see planning risk as one of the biggest unknowns, so removing it before applying for finance strengthens your position.

Put in Meaningful Equity

A larger deposit reduces the lender's risk and shows you have skin in the game. As a first-time developer, expect to contribute 30-40% of total project costs from your own funds.

Work With a Specialist Broker

A broker who specialises in development finance knows exactly which lenders are open to first-time developers and how to present your application in the strongest possible light.

Why Use Doulton

The importance of a good broker

As a first-time developer, the lender you approach and how your application is presented makes a significant difference. Going directly to a lender who does not work with new developers wastes time and can result in a declined application on your credit file.

A specialist broker like Doulton knows which of our 130+ panel lenders are open to first-time developers, what they need to see, and how to package your application. We handle the legwork so you can focus on the project.

Our service is free for most borrowers, as we are paid by the lender on completion. There is no upfront cost and no obligation.

Ready to start your first development?

Tell us about your project and we will advise on the best route to funding. No obligation, no upfront fees.

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FAQs

Frequently asked questions

What is development finance?

Development finance funds the construction, conversion or major refurbishment of property. Lenders advance money in stages ('drawdowns') as works progress, verified by a quantity surveyor or monitoring surveyor. Total cost facilities are typical: day-one land advance plus a build facility.

How much can I borrow on a development project?

We arrange development funding from £125k to £300m+. Typical sizing is up to 65-70% of gross development value (GDV) and up to 90% of total project cost, with the balance funded by your equity or mezzanine finance.

Do I need prior development experience?

Experienced developers get the widest lender access and sharpest pricing. First-time developers can still secure funding, usually via specialist lenders, with a capable main contractor and a smaller initial scheme. We have a dedicated route for first-time developers.

What about planning permission?

Most lenders require detailed planning to be in place before drawdown of build funds. Land loans with planning gain exits, outline-only sites and permitted-development conversions can also be funded, but terms and LTVs reflect the higher planning risk.

How is interest charged on development finance?

Interest is almost always rolled up and repaid on exit from sales or refinance, so your project does not need to carry monthly repayments during the build. Lenders size the facility to include a build-in interest reserve.

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